Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

Share Offering by Two Harbors

Two Harbors Investment Corp. (TWO - Free Report) , a real estate investment trust,recently issued a public offering of 50 million shares at $10.44 a share to increase its liquidity. In a bid to cover over allotments, the company will also provide a 30-day option to the underwriters for purchasing an additional 7.5 million shares.The offering is expected to close on July 18, 2012.

Two Harbors raised gross proceeds of $522.0 million from the offering before underwriting discount and commissions. The company intends to utilize the proceeds generated from the transaction to purchase financial assets, residential mortgage-backed securities (RMBS) residential mortgage loans, residential real properties and for other general corporate purposes.

As of March 30, 2012, Two Harbors' cash position stood at $545.7 million. The company raised net proceeds of $691.9 million through the issuance of 73.6 million shares of common stock during the first quarter of 2012.

During the first quarter 2012, the company reported core earnings of 34 cents per share compared with 40 cents per share in the year-earlier quarter.

Two Harbors Investment Corp. is a Maryland-based corporation focused on investing, financing and managing residential mortgage-backed securities (RMBS) and mortgage loans. The company’s portfolio includes Agency RMBS and non-Agency RMBS. Agency RMBS are those whose interest and principal payments carry guarantees from federally chartered entities or government agencies while non-Agency RMBS are those that are not issued or guaranteed by such government entities.

As of March 31, 2012, the total value of the company’s portfolio was $9.4 billion, of which approximately $7.5 billion was Agency RMBS and derivatives and $1.9 billion non-Agency RMBS.

Two Harbors currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Redwood Trust Inc. (RWT) holds a Zacks #2 Rank, which implies a short-term Buy rating.

Resources

Client Support

Follow Us

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Copyright 2017 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2016 and were examined and attested by Baker Tilly Virchow Krause, LLP, an independent accounting firm. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.